Hong Kong is considering allowing staking for
exchange-traded funds (ETFs) investing directly in Ether. The Securities and
Futures Commission (SFC) of Hong Kong is engaging the city’s cryptocurrency ETF
issuers about providing staking services via licensed platforms, The Business
Times reported.
This potential regulatory change could open a new
source of passive income for investors, positioning Hong Kong ahead of the US,
where such offering is restricted. Staking offers investors a way to earn
passive income by locking tokens on the Ethereum network to help validate
transactions, currently yielding about 4% annually in additional coins.
If the SFC approves the staking yields, it could
significantly enhance the attractiveness of Hong Kong’s spot-crypto ETFs, which
have experienced moderate demand since their launch in April. This move could
give Hong Kong a competitive edge over the US, which recently approved spot
ether ETFs applications by Nasdaq, Cboe, and NYSE.
Hong Kong is actively positioning itself as a digital
asset hub, competing with cities like Singapore and Dubai. This follows the
implementation of a dedicated regulatory regime last year aimed at rejuvenating
the city’s status as a leading financial center after a period of political
unrest.
Beyond ETFs, Hong Kong is reviewing several
applications to increase the number of licensed digital asset exchanges.
Additionally, it is developing a framework for stablecoins, which are typically
pegged to fiat currencies and backed by reserves of cash and bonds.
Expect ongoing updates as this story evolves.
Hong Kong is considering allowing staking for
exchange-traded funds (ETFs) investing directly in Ether. The Securities and
Futures Commission (SFC) of Hong Kong is engaging the city’s cryptocurrency ETF
issuers about providing staking services via licensed platforms, The Business
Times reported.
This potential regulatory change could open a new
source of passive income for investors, positioning Hong Kong ahead of the US,
where such offering is restricted. Staking offers investors a way to earn
passive income by locking tokens on the Ethereum network to help validate
transactions, currently yielding about 4% annually in additional coins.
If the SFC approves the staking yields, it could
significantly enhance the attractiveness of Hong Kong’s spot-crypto ETFs, which
have experienced moderate demand since their launch in April. This move could
give Hong Kong a competitive edge over the US, which recently approved spot
ether ETFs applications by Nasdaq, Cboe, and NYSE.
Hong Kong is actively positioning itself as a digital
asset hub, competing with cities like Singapore and Dubai. This follows the
implementation of a dedicated regulatory regime last year aimed at rejuvenating
the city’s status as a leading financial center after a period of political
unrest.
Beyond ETFs, Hong Kong is reviewing several
applications to increase the number of licensed digital asset exchanges.
Additionally, it is developing a framework for stablecoins, which are typically
pegged to fiat currencies and backed by reserves of cash and bonds.
Expect ongoing updates as this story evolves.
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